Originally published on: November 28, 2024
Cryptocurrency adoption in India is booming despite the government imposing what many consider to be discouraging taxes on crypto trading. Despite the 30% tax on crypto gains and a 1% tax deducted at source as part of the Union Budget 2022, the local community has shown resilience and continues to propel the crypto ecosystem forward.
According to Chainalysis, India is the leading global economy in terms of crypto adoption. While the tax structure may erode profits and discourage frequent trading, local market observers note that the Indian crypto ecosystem is gaining momentum, thanks to the innovative approaches of crypto exchanges.
ZebPay’s chief operating officer, Raj Karkara, highlighted the vibrancy of the Indian market for crypto, driven by a young, tech-savvy population with a growing interest in blockchain solutions. Despite the challenges posed by high taxes, the Indian crypto community remains strong and continues to flourish.
Indian crypto YouTuber Ajay Kashyap echoed Karkara’s sentiments, emphasizing the tech-savviness of Indians and their enthusiasm for digital assets. With over 100 million estimated crypto owners in India in 2024, the country’s potential in the crypto space is immense.
While India’s regulatory landscape is evolving, with regulatory approvals granted to major exchanges like Binance and KuCoin, there is still room for improvement. CoinDCX exchange co-founder Sumit Gupta noted that India’s full potential in the crypto market has yet to be realized, despite its consistent ranking among global leaders in crypto adoption.
CoinSwitch business head Balaji Srihari emphasized the need for flexibility in policies to encourage broader participation in the crypto market. As India’s crypto ecosystem continues to evolve, the potential for growth and innovation in the industry remains promising.
With a thriving community and increasing government engagement with crypto, India’s crypto landscape is poised for further growth and development. Despite tax challenges, the resilience and innovation of the Indian crypto community continue to drive the industry forward.
